Kenya Airways (KQ) Acting Chief Executive Officer George Kamal has assured thousands of employees that the airline’s planned search for a strategic investor will not result in mass layoffs.
Kamal said pilots, cabin crew, engineers and ground staff would remain protected by labour laws, collective bargaining agreements (CBAs) and provisions that will be included in agreements with potential investors.
He spoke on Wednesday, August 19, during an engagement with journalists and editors, amid reported plans by the government to secure fresh capital for the national carrier by December 2026.
Kamal was responding to concerns that a foreign airline or private equity firm could acquire a controlling stake in KQ and subsequently replace Kenyan workers with foreign employees.
“The rules in the country do not allow anybody to just fire people. You cannot just go fire people,” he said.
The acting CEO said a strategic investor would be expected to expand the airline by acquiring more aircraft and growing its other businesses, including the maintenance, repair and overhaul (MRO) unit.
“The equity investor wants to grow the equity. Any equity investor is coming not to invest in your debt. He's coming to invest in growth by adding more aircraft, by growing the business, by growing the MRO. So he needs manpower,” Kamal said.
He also ruled out the wholesale replacement of Kenyan pilots with foreign personnel, citing restrictions on the employment of expatriate pilots. “He is not allowed to get foreign pilots into the country. We have unions, we have a CBA signed and we have laws in the KCAA [Kenya Civil Aviation Authority],” Kamal stated.
He said foreign pilots could only be brought in temporarily where necessary, with the arrangement intended to allow Kenyan pilots to acquire the required skills before taking over.
Kamal further disclosed that employee protection had been incorporated into agreements being negotiated as part of the proposed investment. “It is in all the agreements. When you do an agreement based on governance, you ensure the staff stability, and this is one of the things we put in place, 100%,” he said.
He also clarified that the planned capital-raising deal would not necessarily involve a single investor taking control of the airline. “It might be multiple, might be one, might be two, it might be three. So it's not a single investor,” Kamal said.
Government Targets Investor by December
The assurances come as the National Treasury works with KQ to identify a strategic investor who can inject fresh capital into the airline and support its turnaround.
In a response to a recommendation by the Public Accounts Committee (PAC), the Treasury said the process was ongoing and targeted for completion by December 2026.
“Kenya Airways (KQ) and the government as the majority shareholder, are actively seeking to raise capital through a strategic investor to help stabilise, grow its operations and as a turnaround Strategy for the airline,” the Treasury said as quoted in a report by the Business Daily.
“This process is currently ongoing and is targeted to be finalized by December 2026. Once a consensus is reached, the necessary approvals will be sought and an update will be submitted.”
The government owns a 48.9 per cent stake in KQ and is expected to support the capital-raising process to boost investor confidence. KQ said in June that it was seeking at least $1.5 billion (about Ksh194.4 billion) from a strategic investor through an international tender. The funds are expected to support the airline’s operations and help address its heavy debt burden.
The search for an investor has been driven by growing concerns over the government’s continued financial support for the airline. Parliament and the International Monetary Fund (IMF) have previously identified KQ as a significant fiscal risk, with the IMF pushing for a strategic investor to stabilise the airline and eventually allow the government to reduce its involvement.
In February, the Treasury said it would seek foreign investors for a transaction valued at approximately Ksh259.3 billion ($2 billion), potentially involving other government assets to make KQ more attractive despite its negative equity position.
KQ Remains Under Financial Pressure
KQ continues to face significant financial challenges despite efforts to turn around the airline. Its negative equity widened to Ksh132 billion last year from Ksh118.2 billion previously, while total liabilities stood at Ksh315.2 billion against assets worth Ksh183.2 billion.
The government has indicated that it may continue helping KQ meet financial obligations during 2026, highlighting the airline’s continued dependence on taxpayer support.
The search for a strategic investor is therefore expected to determine the future ownership and financial structure of KQ, with Kamal maintaining that employees will be protected as the process progresses.
